Question
On its website, the Statesman Journal newspaper (Salem, Oregon, 2005) reports mortgage loan interest rates for 30-year and 15-year fixed-rate mortgage loans for a number
On its website, the Statesman Journal newspaper (Salem, Oregon, 2005) reports mortgage loan interest rates for 30-year and 15-year fixed-rate mortgage loans for a number of Willamette Valley lending institutions. Of interest is whether there is any systematic difference between 30-year rates and 15-year rates (expressed as annual percentage rate or APR) and, if there is, what is the size of that difference. The following table displays the 30-year rate and the 15-year rate for each of nine lending institutions. Also given is the difference between the 30-year rate and the 15-year rate for each lending institution. Use the table to compare the 30-year rates and the 15-year rates. Also, calculate the average of the differences between the rates. (Input the amount as positive value. Round your answer to 4 decimal places.)
| Lending Institution | 30-Year | 15-Year | Difference |
| Blue Ribbon Home Mortgage | 3.581 | 5.028 | -1.447 |
| Coast To Coast Mortgage Lending | 5.769 | 6.498 | -0.729 |
| Community Mortgage Services Inc. | 3.722 | 5.360 | -1.638 |
| Liberty Mortgage | 4.104 | 3.986 | 0.118 |
| Jim Morrison's MBI | 5.001 | 5.762 | -0.761 |
| Professional Valley Mortgage | 4.157 | 4.960 | -0.803 |
| Mortgage First | 4.421 | 4.156 | 0.265 |
| Professional Mortgage Corporation | 3.546 | 5.853 | -2.307 |
| Resident Lending Group Inc. | 3.139 | 4.817 | -1.678 |
| Lending Institution | 30-Year | 15-Year | Difference |
| Blue Ribbon Home Mortgage | 3.581 | 5.028 | -1.447 |
| Coast To Coast Mortgage Lending | 5.769 | 6.498 | -0.729 |
| Community Mortgage Services Inc. | 3.722 | 5.360 | -1.638 |
| Liberty Mortgage | 4.104 | 3.986 | 0.118 |
| Jim Morrison's MBI | 5.001 | 5.762 | -0.761 |
| Professional Valley Mortgage | 4.157 | 4.960 | -0.803 |
| Mortgage First | 4.421 | 4.156 | 0.265 |
| Professional Mortgage Corporation | 3.546 | 5.853 | -2.307 |
| Resident Lending Group Inc. | 3.139 | 4.817 | -1.678 |
| Lending Institution | 30-Year | 15-Year | Difference |
| Blue Ribbon Home Mortgage | 3.581 | 5.028 | -1.447 |
| Coast To Coast Mortgage Lending | 5.769 | 6.498 | -0.729 |
| Community Mortgage Services Inc. | 3.722 | 5.360 | -1.638 |
| Liberty Mortgage | 4.104 | 3.986 | 0.118 |
| Jim Morrison's MBI | 5.001 | 5.762 | -0.761 |
| Professional Valley Mortgage | 4.157 | 4.960 | -0.803 |
| Mortgage First | 4.421 | 4.156 | 0.265 |
| Professional Mortgage Corporation | 3.546 | 5.853 | -2.307 |
| Resident Lending Group Inc. | 3.139 | 4.817 | -1.678 |
| Lending Institution | 30-Year | 15-Year | Difference |
| Blue Ribbon Home Mortgage | 3.581 | 5.028 | -1.447 |
| Coast To Coast Mortgage Lending | 5.769 | 6.498 | -0.729 |
| Community Mortgage Services Inc. | 3.722 | 5.360 | -1.638 |
| Liberty Mortgage | 4.104 | 3.986 | 0.118 |
| Jim Morrison's MBI | 5.001 | 5.762 | -0.761 |
| Professional Valley Mortgage | 4.157 | 4.960 | -0.803 |
| Mortgage First | 4.421 | 4.156 | 0.265 |
| Professional Mortgage Corporation | 3.546 | 5.853 | -2.307 |
| Resident Lending Group Inc. | 3.139 | 4.817 | -1.678 |
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Fundamentals Of Financial Planning
Authors: Michael A Dalton, Joseph Gillice
3rd Edition
1936602091, 9781936602094
